REVIEW AND REVISION OF CONTRACTS WITH INDIVIDUAL CONTRACT PERSONNEL

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP78-04718A002000180023-7
• Release Decision: RIPPUB
• Original Classification: S
• Document Page Count: 3
• Document Creation Date: December 9, 2016
• Document Release Date: June 7, 2001
• Sequence Number: 23
• Publication Date: March 9, 1956
• Content Type: MF

WGUIIS5III FIN.
}_-'. '?- -' Pproved For Release 20011flW R@P78-04718A0020,
9 MAR '1q5&? 3 4
By:
---MORANDUM FOR: Deputya Director (Support)
SUBJECT:
Review and Revision of Contracts with
Individual Contract Personnel
REFERENCE: (a) Memorandum for DCI from DD/P dated
18 January 1956, Subject: "Taxability of
Allowance Payments to Contract Agents.
(b) Memorandum to D/Pers from ADD/S
dated 24 January 1956, Subject as above.
1. This memorandum contains for your information a report of
progress in reviewing and revising agent contracts in the light of the
policy guidance given in Reference (a). This report is submitted pur-
suant to paragraph 3 of Reference (b).
2. Subsequent to receipt of a copy of Reference (a) on 2 February
1956, discussions were held both internally and with the office of the
SSA/DDS relative to procedures for implementing the policies established.
On 14 February 1956, a memorandum setting forth the relevant factors,
and the names of the agents concerned, was transmitted by the Chief, Con-
tract Personnel Division to the SSA/DDS for each of the DD/P divisions
having agents whose contracts provided some form of allowance payment.
A similar memorandum, a copy of which is attached, was also sent to the
Office of Communications. To assure complete understanding of the memo-
randum, on 20 February 1956, a representative of the Contract Personnel
Division met with the DD/P Personnel Officers to answer questions re-
garding its implementation.
3. As of this date, the Contract Personnel Division is now awaiting
requests for contract amendments from the operating offices concerned.
Although they have had queries from certain of the divisions, no requests
have as yet been received. However, contract language has been devised
to accommodate anticipated requests, so that there should be no delay in
preparing amendments when the requests are received. It may be noted
that from the point of view of magnitude, the total operation will not be as
great as initiall expected. A review of all agent contracts disclosed that
there were only contracts with provisions for allowances in DD/P
and in the Office of Communications.) 25X9A2
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4. The only real problem encountered in the exercise so far has
had to do with establishing a formula which would meet the requirements
of the revenue laws for placing a monetary value on quarters furnished
by the Government. In this connection, representatives of the Office of
General Counsel, Finance Division, SSA/DDS and this office have unani-
mously agreed on using for both tax withholding and tax liability purposes
the amounts established as quarters allowances by the Standardized Regu-
lations (Government Civilians, Foreign Areas), since this appears to be
the most equitable as well as the most workable formula. It is understood
that a representative of OGC has obtained informal agreement of the Internal
Revenue Service that in lieu of using actual rental cost the requirements of
the revenue laws will be met through use of either a fixed experience factor
or a predetermined rental or property value. It was the concensus of the
group mentioned above that the quarters allowances established by the
Standardized Regulations would meet these criteria. This office intends
to present this formula in writing to both your office and to the Deputy
Director (Plans) for policy approval but in the meantime if cases arise,
the formula would be used in writing or amending contracts, subject to
further amendment if required.
1CP
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ORIGINAL DOCUMENT MISSING PAGE(S):
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